Stafford (Direct) Loan


To be eligible for a Stafford loan, you must meet the following criteria:

  • You must be enrolled at least half-time.
  • You must file the FAFSA (Free Application for Federal Student Aid) every year that you are enrolled in school. Most students who apply will qualify for a subsidized or unsubsidized Stafford loan.
  • To receive a Stafford loan during the summer, you must file the FAFSA and submit a summer aid application.

The processing of Federal Stafford Loans at MSU will change for all students in Fall 2021. Under the new approach, your annual loan amount will be available during the fall, spring and summer academic year.

Follow this link for more information on Federal Stafford Loans for Fall 2021

How to apply

The Stafford loan application is a three-step process. If you do not complete all three steps, your loan will not be processed.

  1. Accept the loan in StuInfo via the "Financial Aid (check your aid)" tool. See the video below for more details.
  2. Complete the Stafford Loan Entrance Counseling process at the website.
  3. Sign your Stafford Loan Master Promissory Note (MPN) at the website. The Stafford MPN is good for ten years provided at least one Stafford Loan is disbursed to you within the first 12 months after signing.

Accepting your loan

Please take a moment to watch this video which shows you how to accept a Stafford loan.

Differences between subsidized and unsubsidized loans


The federal government pays the interest on a subsidized loan while the student is in school at least half-time. After the student drops below half-time or leaves school, interest will begin to accrue. Students should contact their federal loan servicer for more information.


Interest does accrue on an unsubsidized loan while you are in school. You may choose to pay interest while in school in order to avoid "paying interest on interest" (capitalizing interest).

Interest rates

The Direct Loan interest rate varies annually with a maximum rate of 8.25% for undergraduates and 9.5% for graduate students. The interest rate for undergraduate Subsidized or Unsubsidized Direct Loans disbursed on or after July 1, 2022 is 4.99%. The interest rate for graduate Unsubsidized Direct Loans disbursed on or after July 1, 2022 is 6.54%.

Loan fees

Stafford loans disbursed on or after October 1, 2020 require a 1.057% origination fee which is paid at the time of disbursement. Thus, 98.943% of the gross loan amount will be disbursed to your student account.

Repayment and consolidation

When you near graduation (or drop below half-time), you will be given information on loan repayment and consolidation. This is referred to as exit counseling (or "the exit interview"). For more information, see our page on loan repayment.